Solve the following problem. The last 4 digits of your ID number are to be used in this problem as A, B, C and D. For example, if your student ID is 35621215: A = 1, B = 2, C = 1, and D = 5. Therefore, for any time that A appears as a number, you may use 1, for B you will use 2 and so on. DUE DATE IS MARCH 7, 2020. NO LATE SUBMISSIONS.

Suppose ABC firm is considering an investment that would extend the life of one of its facilities for 5 years. The project would require upfront costs of $8M plus $(35+C)M investment in equipment. The equipment will be obsolete in (2+A) years and will be depreciated via straight-line over that period (Assume that the equipment can't be sold). During the next 5 years, ABC expects annual sales of (A+B+50)M per year from this facility. Material costs and operating expenses are expected to total (B+40-C-3)M and (B+1+0.8)M, respectively, per year. ABC expects no net working capital requirements for the project, and it pays a tax rate of (30+D)%. ABC has (70+A)% of Equity and the remaining is in Debt. If the Cost of Equity and Debt are (A+8)% and 6% respectively, should they take the project?

NOTE: YOU MUST ANSWER THE QUESTIONS IN THE EXCEL DOCUMENT. The answers to be provided are: a) WACC (in percentage, thus 3.8% must be entered as 3.8); b) Incremental FCF at 0; c) Incremental FCF from year 1 to year 5; d) NPV. All dollars answers must be submitted in Millions, thus 4.56M must be entered as 4.56. Round to the second decimal in each case. DO NOT PUT ANY UNITS IN YOUR ANSWERS